Gold futures close sharply higher after second weekly gain

WASHINGTON (dpa-AFX) – Gold prices rose to record highs on Friday amid expectations of more rate cuts by the Federal Reserve in the coming months. Rising tensions in the Middle East also boosted demand for the safe haven yellow metal.

The Fed cut interest rates by 50 basis points on Wednesday. Central bank officials also forecast continued rate cuts in the coming months and next year, raising optimism that the central bank can engineer a soft landing for the economy.

A stronger dollar is limiting the safe-have metal’s upside. The dollar index rose 0.25, or about 0.23%, to 100.86.

Gold futures for September closed $31.90, or about 1.23% higher, at $2,619.90 an ounce. Gold futures rose about 1.5% on the week, marking their second straight weak gain.

Silver futures for September rose $0.082 or 0.26% to $31.176 an ounce, while copper futures for September fell to $4.2810 a pound, down $0.0050 or 0.12% from the previous close.

Israel has reportedly launched major attacks on Lebanon. Israel said warplanes hit hundreds of rocket launchers.

Meanwhile, Bulgarian authorities have said that a Sofia-based company had nothing to do with the supply of exploding communications equipment to the Lebanese militant group Hezbollah, according to a report by Agence Frane-Presse.

Earlier this week, dozens of pagers and walkie-talkies exploded in Lebanon, killing several people and injuring nearly 3,000.

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